Rio Tinto signs $2-bn land deal with Pilbara Aboriginals

Rio Tinto, the world's third largest mining company boosted its expansion plans by agreeing to pay $2 billion over 40 years for gaining access to the resource-rich land of the Aboriginals in the Pilbara region of Western Australia.

The London-based miner yesterday sealed land use partnerships with five indigenous groups across 71,000 kms in the Pilbara region, securing the current and future operations of its iron ore business.

Rio Tinto said that it is also in advanced negotiations with the four remaining indigenous groups upon whose land the mining or infrastructure operations are situated. Those agreements are expected to be concluded before the end of this year.

With iron ore prices reaching an all time high this year, Rio Tinto has been looking to expand its operations and increase its iron ore production by nearly 50 per cent.
Sam Walsh, Rio Tinto CEO, Iron ore and Australia, said the agreements were a historic acknowledgement of mutual recognition and respect between Rio Tinto and the Traditional Owners.

"The agreements provide Rio Tinto with consent for all new developments on the Traditional Owners' land, including support for the expansions we have outlined. Importantly, we now have full support for our major port expansions at Cape Lambert and Wickham.

"The agreements, negotiated over several years, will be implemented through a series of committees and corporations. They apply seven regional standards that are unique and measurable, marking a new approach to the way Aboriginal groups and resources companies can work together," he added.